March 22, 2023 4:38pm

A daily choice between keeping the focus on inflation and stemming the banking chaos while the cell and gene therapy sector collides with economics

Pre-open indication Results: 2 Hits and 2 Miss

I write this blog/newsletter to inform investors with facts and supporting numbers focused on what they need to hear that others will not say or write about - truth!  

Subscription is coming, it is not conscription but, an offer to join our collective of like-minded investors!  Join me … in the NO spin zone.


If I have learned one thing as a former research analyst in a venture and public fund, operating executive, adjunct (MBA) business school professor now a journalist; it is that your life and your portfolio are largely tied to your knowledge of price movements and questioning pricing targets.

 

The Dow closed DOWN -530.49 points (-1.63%), the S&P closed DOWN -65.90 points (-1.65%) while the Nasdaq closed DOWN -190.15 points (-1.60%)

 

Henry’omics:

We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes floated down on Wednesday after waiting for Jerome and his policy decision.

Financial conditions are tightening after SVB’s collapse and could slow the economy, Powell says. <CNBC>

More dirt on how Silicon Valley Bank (SVB) was run – kept saying fraud would sooner or later show its ugly and dirty laundry – “SVB dished out record number of loans to shareholders, officers and directors in the final three months of 2022. The findings are documented in Government reports but they do not disclose the recipients or their purpose. It comes as San Francisco Federal Reserve President Mary Daly came under fire for failing to spot weaknesses at SVB.”

·         The money was handed it out in the final quarter of 2022 and was three times higher than the amount borrowed by insiders in the three months before, marking a two-decade record high.

·         At the moment, “there is no suggestion the loans were a result of wrongdoing”. <Daily Mail>

·         The firm had $15 billion in unrealized losses at the end of the year end. <Bloomberg>.

·         The Fed is conducting an internal review of potential regulatory issues around SVB, led by Vice Chair for Supervision Michael Barr, and Powell said he expects investigations from outside the central bank as well. <CNBC>

Economic Data Docket: The Fed hiked its benchmark interest rate by another 25 basis points, in line with Wall Street’s predictions. The increase takes the benchmark federal funds rate to a target range between 4.75%-5%.

 

RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened – differences

  • Wednesday’s advance/decline line opened negative at 5 up/ 29 down and 1 flat, stayed negative with 4 up/ 31 down and 0 flat at the mid-day, ending with a negative close of 3/32 and 0 flat

 

Pre-open indication Results: 2 Hits <Sage Therapeutics (SAGE -$0.68), Verve Therapeutics (VERV -$0.96)> 2 Miss <BioLife Solutions (BLFS -$0.99), CRISPR Therapeutics (CRSP -$0.29)>

52-week low:

·         Caribou Biosciences (CRBU) at $4.67

·         Editas Medicine (EDIT) at $7.40

·         Solid Biosciences (SLDB) at $3.42

·         Sangamo Therapeutics (SGMO) at $1.87

 

RegMed Investors (RMi) Research Note: Q4 and FY22 earnings reporting … https://www.regmedinvestors.com/articles/12843 - 26 of 35

 

Key Metrics:

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Wednesday, the IBB was down -2.14% and the XBI was down -3.79%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.85 points or +3.98% at 22.23

 

Closing Down (10 of 32):

  • Intellia Therapeutics (NTLA -$2.64 after Tuesday’s +$1.52 and Monday’s -$1.57),
  • Vericel (VCEL -$2.11 after Tuesday’s +$0.46 and Monday’s +$0.63),
  • Beam Therapeutics (BEAM -$ after Tuesday’s +$0.17 and Monday’s -$0.99),
  • CRISPR Therapeutics (CRSP +$1.52 after Tuesday’s +$0.60 and Monday’s -$1.28)
  • Verve Therapeutics (VERV -$1.47 after Tuesday’s +$0.34),
  • Sage Therapeutics (SAGE -$1.26 after Tuesday’s -$0.69 and Monday’s +$1.23),
  • Regenxbio (RGNX -$1.23),
  • BioLife Solutions (BLFS -$1.09 after Tuesday’s +$1.29 and Monday’s -$0.54),
  • Ultragenyx (RARE -$1.06 after Tuesday’s -$0.66 and Monday’s +$0.47),
  • Prime Medicine (PRME -$0.88 after Tuesday’s +$0.38 and Monday’s +$0.61),

Closing Up (3 of 3):

  • Biostage (OTCQB: BSTG +$0.24 and Tuesday’s $0.00),
  • Solid Biosciences (SLDB +$0.14 after Tuesday’s -$0.04 and Monday’s -$0.43),
  • Mesoblast (MESO +$0.12 after Tuesday’s +$0.20),

 

Q1/23 – March

  • Wednesday closed negative with 3 incliner, 32 decliners and 0 flat

 

The BOTTOM LINE: I try to keep it simple … and short!

After Monday’s sector decline, Tuesday’s sector response was advancing share pricing while Wednesday kept our heads in the sand - hiding after waiting for Jerome to dictate the future.

Reiterating a quote from the master, “Jeremy Grantham expects stocks to plunge and a recession to hit as the "everything bubble" bursts. The investor warns the S&P 500 could halve in value to around 2,000 points in a worst-case scenario. Grantham advised against betting on US stocks for the short term, and touted emerging markets. Jeremy Grantham has warned the implosion of an "everything bubble" could tank the S&P 500 by up to 50%, and plunge the US economy into a painful recession.” <Business Insider>

The rush of Q4 and FY22 earnings to release is on … 26 of my 35 covered have reported.

Upcoming Q4 earnings reporting will present challenges to share pricing.

·         Nine (9) more releases forthcoming of my 35 covered companies

·         Brainstorm Cell Therapeutics (BCLI) 3/30 - Thursday

WHY (?) do I keep posting, so investors can get a daily update of the sector's share pricing and some individual companies TRUTHS while electronic trading chews on our portfolio edges.

Remember, there are four (4) phases of the stock cycle: accumulation; markup; distribution; and markdown.

As I have stated, “What goes up with ceremony, goes down with disdain followed by the opposite effect.”

I am definitely considered a contrarian depending on the session – one has to be a watcher of the ups and downs as well as measurer of sentiment. I am also a NO trust investor but, a validate and verify journalist/analyst.

The NO spin zone!

Biostage (OTCQB: BSTG) – still pumping the volume and TRYING to promote the share price!!

Wednesday closed up =$0.24 with 720 shares traded after Tuesday closed flat with 2,085 shares traded after Monday closed down -$0.10 with 498 shares traded, Friday closed up +$0.45 with 1,590 shares traded following Thursday’s +$0.09 with 3,924 shares traded after last Wednesday closed down -$0.44 with 4,166 shares traded  <3-month average volume = 1,710 shares>

·         Question: Review the number of shares traded … is OTCQB: BSTG a Ponzi scheme (with their pump/promote buy and sell agenda) as shares are bought to replace those sold??

·         Let’s also welcome a NEW accounting firm – the fourth (4th) in five (5) years. When will they resign …??

·         Where is the SEC??

·         NEW Auditors must consider whether there is substantial doubt about a company’s ability to continue as a going concern, an assessment of the company’s viability over the next year.

·         Will OTCQB: BSTG continue as an “going concern”!

My question that resounds, that should be asked is how many companies are at the end of sentiments …  leash?

 

Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.

Regulation Analyst Certification (Reg AC): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.